China Merchants Bank (600036) 2019 Results Express: Profit Growth Upward, Excellent Asset Quality

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China Merchants Bank (600036) 2019 Results Express: Profit Growth Upward, Excellent Asset Quality

Express report highlights: 1. The performance is steadily increasing, and the annual growth rate is as high as 15%: It can be expected that the provision has basically not released profits, and the difference between the continuous growth rate of the company’s revenue and operating profit and the growth rate difference of the previous three quarters have basically remained at 1.


4 points; The growth rate of net profit in the fourth quarter mainly contributed to diabetes.

2. The asset quality continues to be outstanding: The non-performing rate has continued to decline since 2016, and is currently at the low level in early 2015.

NPL ratio at the end of 2019 1.

16%, a decrease of 3bp from the previous quarter.

3. The company’s net non-interest income has historically been high and low, excluding the discrete effects. Looking forward, it maintains an upward trend and is expected to be better than its peers.

First quarter of 2019-Net net non-interest long-term growth8.

6% / 3.

6% / 8.

9% / 9.


Insufficient Express Reports: 1. Net interest margin decreased by 9bp to 2 after reducing glucose.

33%, the absolute value stays high: the expected increase in tax-exempt asset allocation for growth gains; and the expected negative return on capital in line with industry trends is also part of the pressure.

Investment suggestion: Key recommendation target.

China Merchants Bank has recommended the continuous bidding recently. It has a stable operation and is estimated to be within a reasonable range.

Various indicators show its solid and excellent fundamentals. At the same time, China Merchants Bank’s strategy is strong, and its retail business is based on the existing system. Its moat can continue to deepen and adapt to the latest 杭州桑拿 developments in financial technology.

China Merchants Bank has a high degree of “scarcity” in banking stocks and is worth holding for a long time.

China Merchants Bank is an outstanding company that we focus on and recommend continuously.

Company 2019E, 2020E PB 1.

66X / 1.

46X; PE10.

47X / 9.

2X (Share Bank PB 0.

87X / 0.

78X, PE 7.

16X / 6.


Risk reminder: The macro economy is facing downward pressure, and performance management is less than expected.